Pass the ACFE Certified Fraud Examiner CFE-Investigation Questions and answers with CertsForce

The Fraud Examiners Manual defines compliance verification as:

“Compliance verification determines whether company policies are met by employee transactions. For example, when employees are out of town, do they adhere to the company policy of not spending more than $30 a day for meals?” .

Thus, the correct function is compliance verification.

The 2014 International Fraud Examiners Manual provides examples of data analysis for accounts payable:

“Examples of data analysis queries that can be performed to help detect fraud through examination of accounts payable include:

• Audit paid invoices for manual comparison with actual invoices.

• Summarise large invoices by amount, vendor, etc.

• Identify debits to expense accounts outside of set default accounts.

• Reconcile cheque registers to disbursements by vendor invoice.”

While other functions apply to payroll or asset management, the most effective function for accounts payable fraud detection is to summarize large invoices by amount and vendor.

The correct answer is: Whether recording is legal depends on consent laws — so the most helpful question is effectively: “Is consent required from one or all parties to record this conversation?”

Among the provided choices, the closest match is NOT listed explicitly. But based on the ACFE manuals, the correct interpretation is that none of the technical details (audio/video, file format, time, duration) matter — only the legal consent requirement matters.

Complete Detailed Explanation with Exact Extracts from Fraud Examiner (CFE) - Investigation Documents: =

The 2014 International Fraud Examiners Manual states:

“In some circumstances, recording an interview might be illegal. Some jurisdictions limit an employer’s right to record employee interviews during an investigation. In fact, in some jurisdictions, audio recording an interview is permitted only with the consent of all parties to the communication. Thus, fraud examiners should always consult with an attorney when deciding whether to record an interview.”

It further emphasizes:

“A telephone recording consent form stipulates where, when, and with whom telephone conversations can be recorded… Be cautioned that the form alone does not make the conduct of recording a telephone conversation illegal or legal.”

???? Interpretation:

The legality of recording has nothing to do with:

Audio vs video (A)

Digital file format (B)

Work hours (C)

Duration (D)

Instead, it depends entirely on jurisdictional consent laws (one-party vs all-party consent).

According to the Fraud Examiners Manual:

“Credit card records are important in tracing assets… information on credit card charges might provide leads to identifying hidden assets. For example, if a fraud examiner notices that the subject used his credit card to purchase items at a marina, the fraud examiner should investigate further to determine if the subject owns a boat”.

Therefore, A is correct.

Wire transfer records include specific transactional details:

“The information contained on a wire transfer generally will include… the amount of the transfer, the date, the name of the sender, the routing number of the originating bank, the identity of the beneficiary, [and] the routing number of the recipient bank”.

They do not list things like the type of money order, customs port of entry, or government ID numbers (CFE Prep explicitly states that recipient government IDs are not typically included).

To confirm ownership of a building, real estate and permit records are most useful. The Manual notes that real property records and related permits identify the owner, provide legal descriptions, and show improvements such as construction of commercial buildings. Court or voter registration records would not typically establish property ownership.

The CFE Prep – Investigations states:

“If a fraud examiner gets a verbal confession from the fraudster, it does not matter whether the fraudster claims his conduct was an accident. The following items of information should be obtained … admission that the accused knew the conduct was wrong, facts known only to the confessor, the accused’s motive, approximate dates, involvement of others, physical evidence, and disposition of illicit income.”

Thus, the examiner does not need a statement about accident.

The manual emphasizes that interviews—especially with subjects in other jurisdictions—pose legal and cultural considerations. Fraud examiners must consider cultural norms (such as personal space, body language, and eye contact) and jurisdiction-specific laws governing the use of information from interviews. In particular, some jurisdictions limit how interview information can later be used. Therefore, the most accurate statement is that the examiner should verify such limitations before proceeding.

Fraud examiners must not opine on guilt, innocence, intent, or disposition. Reports should focus on facts and expert conclusions within their field. The Manual stresses:

“The fraud examiner should refrain from expressing opinions as to the guilt or innocence of any person or entity. Such conclusions are reserved for the trier of fact” (Fraud Examiners Manual, Reporting section).

Options A, B, and D relate to accounting and internal control assessments, which fall within an accounting expert’s scope. Only C is improper because it speculates about the suspect’s character or intent, which is outside the CFE’s role.

Court records are frequently used in fraud investigations. Both the Prep Guide and the Manual agree that the court clerk’s office (court authorities) is the original and most reliable source of certified and accurate records.

Although commercial services and online databases exist, the manuals emphasize that reliability and certification are best ensured by going directly to the court where the case was filed.

Thus, the statement is True.